DXN LIMITED — Capital/Financing Update 2020

Jun 22, 2020

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23 June 2020

ASX Announcement

Business Update

Pre-fabricated modular data centre specialist, DXN Limited (ASX:DXN) (DXN or the Company) advises the market it expects contracted sales for its modules business for the year ended 30 June 2020 to be approx. $8 million, which is less than the $12 million that was previously announced to the market in February 2020. The shortfall is as a result of prospective customers deferring decisions in relation to capital expenditure commitments due to the impact of Covid-19.

The Company’s expected full year revenue for FY20 is expected to be approx. $5m (unaudited), a $3.6m increase compared to FY19.

As announced in February 2020 and completed in mid-May 2020, the Company purchased the assets and revenue of Data Centre 3 Pty Ltd , a Hobart Data Centre, which will generate minimum revenue of $860,000 per annum for three years, which brings total current colocation contracted sales to approx. $3m.

Please note that contracted sales relate to sales whereby a binding agreement has been entered into with a customer, in effect the total contracted value of the sale. Revenue relates to revenue recognised in accordance with Australian Accounting Standards.

The Company also advises its financial statements for the year ended 30 June 2020 will recognise an additional impairment of approx. $1.73 million to its Lease - Right of Use Asset in relation to the Melbourne data centre facility, taking the total impairment for the year to approx. $3.7 million (an impairment of approx. $1.97 million was taken up in the half year accounts at 31 December 2019). Please note the impairment is of a non-cash nature.

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About DXN Limited

DXN Limited designs, builds, owns and operates data centres. Offering integrated, customised and tailored solutions to clients, DXN provides businesses with the option of delivering solutions to site through containerised modules, or space in DXN’s modular colocation facilities to suit technical specifications and operational requirements. From a single rack in the colocation facilities through to fully customised Edge Infrastructure, DXN can deliver a range of solutions to meet modern data centre requirements. DXN has achieved an industry first and become the first modular data centre developer in the world to receive both Uptime Institute Tier-Ready III and Tier-Ready IV design review awards. For more https://dxn.solutions

for more information please contact:

Matthew Madden, CEO

T +61 1300 328 239

E: Matthew.Madden@dxn.solutions

ASX Release authorised by the Board of Directors

DXN Limited

ABN: 46 620 888 548

9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W: dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions